We’re currently experiencing serious technical problems on the site, and as a result are unable to update the news – even though our market data is running as per normal. We sincerely apologise for any inconvenience caused and hope to be up and running again this evening. Thank you for your patience in this regard.
– David McKay (editor) & team

The two
biggest South African unions at Sibanye Gold’s [JSE:SGL] mines got permission to strike
over pay after a deadlock in gold wage talks.

The
National Union of Mineworkers (NUM) and Association of Mineworkers and
Construction Union (AMCU) received strike certificates at Sibanye after
negotiations were referred to the Commission for Conciliation, Mediation and
Arbitration (CCMA), Minerals Council South Africa, an industry lobby group,
said on Thursday.

AMCU was
also granted permission to strike at Harmony Gold [JSE:HAR]. The approval ensures that the
work stoppage is legal, which means employees can’t lose their jobs for
participating.

The gold
companies began wage negotiations with unions in July. Mining-industry jobs
sunk to the lowest since at least 2009 following thousands of job cuts, while
elevated levels of inequality and poverty mean that talks are highly charged
and can result in strike action.

“It is
disappointing that all the parties have not been able to find each other yet,”
Motsamai Motlhamme, chief negotiator for the Minerals Council, said in a
statement. “We remain hopeful that the parties will continue to work towards
reaching an agreement.”

Sibanye,
the largest producer of gold, reduced its wage-increase offer for artisans and
officials to 5% on September 26 from 5.2% previously, trade union Solidarity
said in an emailed statement.

The offer
to raise monthly pay by R625 for entry-level workers is lower than the R1 000
more proposed by AngloGold Ashanti [JSE:ANG], it said.

AngloGold
and the NUM, Solidarity, UASA and AMCU concluded
a three-year wage deal last week. The company is the world’s third-largest
producer of the metal.

Harmony
is offering higher-skilled workers a 6.3% increase, which Solidarity is taking
to its members for consideration, it said in a statement on Wednesday. Workers
on similar pay grades at AngloGold got 6.5%.

The NUM,
which represents 59% of Harmony’s employees, will continue talks with the
company, spokesperson Livhuwani Mammburu said. AMCU represents 24% of the
workers.

Sibanye shares
rose 1.27% to by 10:45 in Johannesburg, while
Harmony fell 0.23%.